HMO Mortgages – Cardiff/Newport/Swansea/Bristol

Monmouthshire Building Society has now launched a mainstream House in Multiple Occupation (HMO) mortgages. Unusually It includes a penalty-free discounted rate. This will be of help to landlords as the choice of HMO lenders is quite restricted.

Basic Criteria

  • The products are available for both purchase and remortgage.
  • Maximum loan to value is 70%
  • Rental coverage is based on a nominal interest rate of 5.99% with a 40% margin.
  • Based on borrowing £200,000 the rent would have to be £1398 pm
  • Arrangement fee 1.50% (minimum £995) can be added
  • Experienced landlords only (2 years letting experience)
  • Postcode restrictions of NP, CF, SA, LD, WR, GL, HR and BS

To avoid confusion we have listed below MBS definitions of what properties will be classed as an HMO.

  • A property occupied by five or more adults or with five or more lettable rooms in an area commensurate with multi-letting
  • A property subject to Houses in Multiple Occupation licensing. A copy of the licence will be required by the Society
  • A property with more than one tenancy in place

There are two products.


  • 3 year fixed rate @ 5.24%
  • Follow on variable rate currently 4.99% (APR 5.5%)
  • Redemption penalties 4% in the fixed rate period.


  • 3 year discounted rate @ 4.49%
  • Follow on variable rate currently 4.99% (APR 5.20%)
  • Penalty-free

The other popular lenders in this area are Paragon, Leeds, Reliance, Shawbrook, TMW, Aldermore and Keystone.

Why Use Neil Soundy Financial Services For Your Mortgage Advice?

  • We are experts in SPV / Ltd Co lending.
  • Your initial consultation is free with no obligation

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How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

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